Market Watch:- Dow, S&P 500, and Nasdaq 100 futures surged 110, 20, and 90 points, respectively.
Wall Street is expected to recover after losing three days for DJIA, despite Fed’s cautious stance on rate cuts, Walt Disney wins activist board seat battle, and Tesla explores India for manufacturing plant.
Powell Stays Cautious
Fed Chair Jerome Powell has remained cautious about future rate cuts, stating that the US central bank will continue to study more data before starting a rate-cutting cycle.
Powell said recent readings on job gains and inflation have been higher than expected, and that rates can fall later this year only when there is greater confidence that inflation is moving sustainably down to the Fed’s 2% target.
Recent strong economic numbers have reduced U.S. rate cut expectations, with rates markets no longer fully expecting a move in June or 75 basis points of easing this year. Atlanta Fed President Raphael Bostic suggested rates should not be reduced until the fourth quarter of this year.
Walt Disney’s board survives battle with activists
Walt Disney’s board has remained intact after a lengthy battle with activist investors, including Nelson Peltz’s hedge fund, Trian Fund Management, and Blackwells Capital.
This decision allows CEO Bob Igor to continue with the company’s turnaround, including restructuring into three divisions, reinvigorating its film and television franchises, and boosting its streaming business.
Disney’s stock price has risen over 30% since January, despite being far below its March 2021 peak. The company’s CEO aims to focus on growth and value creation for shareholders and creative excellence for consumers.
Tesla in India
Tesla is set to study sites in India for a proposed $2 billion to $3 billion electric car plant, focusing on states with automotive hubs like Maharashtra, Gujarat, and Tamil Nadu. This move comes at a time when EV demand is slowing in the US and China due to increased competition. Tesla reported a 8.5% drop in deliveries in Q1 and a 20% decline in Q4, marking the first year-over-year decline since Q2 2020. Hedge fund manager Per Lekander believes this is the beginning of the end of the Tesla bubble and suggests the company could go bust.
Economic Calendar
7:30 Challenger jobs-Cut Report
8:30 International Trade in Goods and Services
8:30 Initial Jobless Claims
10:00 Fed’s Harker Speech
10:30 EIA Natural Gas Inventory
12:15 PM Fed’s Barkin Speech
12:45 PM Fed’s Goolsbee Speech
2:00 PM Fed’s Mester Speech
2:00 PM Fed’s Kashkari Speech
4:30 PM Fed Balance Sheet
5:00 PM Fed’s Paese Speech
7:20 PM Fed’s Musalem Speech
7:30 PM Fed’s Kugler Speech
Must read book about investing – check hereMarket WatchMarket WatchMarket WatchMarket Watch Market Watch Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting
U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.
U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.